today in an interview with fox news's bill o'reilly president obama had this to say. >> that egypt is not going to go back to what it was. the egyptian people want freedom. they want free and fair elections. >> reporter: in a potentially explosive and rapidly changing situation, the president is trying to strike a balance. the administration is supporting the protestors demanding reform while also seeking to protect vital u.s. interests. >> it seems like of like a high wire artist where he has to walk a fine line between wanting mubarik to go, but not going away that creates chaos. >> reporter: analysts say the stake kos not be higher. not only in egypt but throughout the middle east. >> what has happened in egypt has transformed the arab world. and the united states is going to have to fundamentally shift its foreign policy in a way that it has resisted for the past 20 years. >> reporter: now analysts say america's challenge going forward is to help foster these democratic institutions that reflect the will of the people. but to also promote stability in the region. russ? >> reporter